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When I come to a stop and shift into neutral (not every time) the trans will shift into first gear (and stay there) though the shifter is in neutral. Sometimes you can 'wiggle' the shifter enough and get it back into neutral and on occasion you have to go underneath and tap the linkage rearward into neutral. I had it to a shop and they told me that the shifter and linkage are fine. The mechanic does not do internals but suggested that something behind the side plate (inside the transmission) is probably the problem. It's really annoying and not fun to drive;really not driveable. Nobody seems to know what the problem is. Thanks for any help/suggestions.
I'd have this thing up in the air with someone in the drivers seat. Shifting while I watched the levers on the transmission. But it really, really sounds like a miss adjusted shifter or worn out shifter.
perhaps try another mechanic.
Or better still, learn to repair your own car.
The shifter and linkage needs to be removed from car, cleaned, carefully inspected for wear, and reassembled by someone who knows how to rebuild a Muncie linkage.
Another option is to install a Hurst Competition Plus shifter.
Did the mechanic actually put a wrench on the two bolts that hold the 1/2 and 3/4 linkage to the two shafts on the side of the case? If the 1/2 bolt is loose you can shift into neutral and the transmission will stay in 1st.
And don't forget to do this while you're at it. Makes a huge difference in shifter throw.
In the pictures I posted above you'll notice the levers that bolt on the transmission has two sets of holes. The holes closest to the bolts are for short shifter throw.